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Press Release -- June 10th, 2010
Source: AboveNet
Tags: Colocation, Datacenter

i/o Data Centers To Save Customers More Than $25 Million

New Study Reveals IT Departments at Risk of Overpayment for Cross-Connects

(PHOENIX, Ariz.) i/o Data Centers (“i/o”), the leading provider of enterprise colocation and data center solutions, today revealed the results of a new, internal study focusing on the impact of its free cross-connect policy. Cross-connects are frequently a major source of expense for IT departments.

The study concluded that i/o will save its existing customers more than $25 million over the next three years. Additionally, the study identified that cross-connect fees make up a substantial portion of competitor revenues. Kindra Martone, Senior Vice President and General Manager of i/o, added: “What this means is that IT departments are potentially paying more than they should be for data center services.”

The study focused on i/o’s flagship data center, i/o PHOENIX, which has been referred to by Data Center Knowledge, a widely read industry blog, as one of the world’s largest data centers. i/o PHOENIX is a carrier-neutral data center and features two Meet-Me-rooms. More than a dozen telecommunications carriers including AT&T, Verizon Business, Level3, TeliaSonera, AboveNet, AGL, Cogent, Qwest, tw telecom, and XO Communications pull fiber into the data center diversely.

John “Joc” Jacquay, Senior Vice President of Sales and Marketing for AboveNet sees the benefits of i/o’s free cross connects. “AboveNet provides high bandwidth connectivity solutions for its customers, many of them residing at i/o. AboveNet and our customers benefit greatly from not being charged for cross-connects. It is a huge savings. Our customers typically utilize multiple network services, including transit, long haul transport and metro connectivity. The cost of cross connects can really start to add up.”

Since June 2007, i/o has added, on average, close to 100 service provider to enterprise cross-connects per month – a number that is increasing each month as the company adds new customers.

“We’ve never charged for cross-connects, and almost all of our competitors do, but it hasn’t been until this analysis was completed that we realized the magnitude of the impact on IT departments,” said George Slessman, CEO of i/o. “We don’t believe in toll-boothing our customers”, says Slessman. “We provide a premium offering to our customers, and this includes free cross-connects.”

About i/o Data Centers:
i/o Data Centers is the leading provider of enterprise colocation and data center solutions. i/o designs, builds and operates data centers for the world’s largest enterprises, governments and Web properties with an “always-on” service level. For more information on i/o Data Centers, please visit www.iodatacenters.com or become a fan on Facebook or follow them on Twitter.

I/O Contact
Jennifer Kaplan
(602) 550-1810
jennifer.kaplan@sparkdesign.com

About AboveNet, Inc.
AboveNet, Inc. provides high-bandwidth connectivity solutions for business and carriers. Its private optical network delivers key network and IP services in and among top U.S. metro markets and globally. AboveNet’s network is widely used in demanding markets such as financial services, media, health care, retail and government.

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This news release contains forward-looking statements that involve risks and uncertainties. Factors that could cause or contribute to such risks and uncertainties include, but are not limited to, general economic and business conditions, competition, changes in technology and methods of marketing, and various other factors beyond the Company’s control. This also includes such factors as are described from time to time in the SEC reports filed by AboveNet, Inc., including the most recently filed Form 8-K.

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